Explorations in Application of PPM – Energy & Industrial

Embark on the transformative journey of Project Production Management, exploring its impact on project delivery and fostering a culture of continuous improvement. Meanwhile, discover how Tripatra, embraces Total Project Management for efficient and sustainable operations across oil, gas, and minerals projects.

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Overview

In a recent presentation, M. Al-Azahary B. A. Sani and team provided an insightful overview of their Project Production Management (PPM) journey. The presentation highlighted the evolution from a proof of concept in 2020-2021 to the ongoing proof of value phase, emphasizing a shift towards a value obsession approach. Strategic deployment of Business Process Management (BPM) across projects, commitment reliability framework, and success stories of savings and efficiency gains were key focal points. Concrete examples, including substation project optimization, demonstrated the practical application of PPM. Challenges, particularly in commitment and mindset shifts, were transparently discussed, emphasizing the need for dedicated champions.

In parallel, Tripatra, a leading Indonesian contractor, showcased its Total Project Management (TPM) journey. Facing challenges in a low-profit market, Tripatra committed to TPM, with a spotlight on environmental, social, and governance standards. The company’s gender equality commitment, digital transformation initiatives, and challenges with local content regulations were discussed. The TPM implementation led to tangible successes, such as reduced man-hours for engineering projects and accelerated construction timelines. Tripatra acknowledged ongoing challenges, including cultural resistance and a lack of TPM knowledge, reinforcing their commitment to revolutionizing project management in Indonesia’s construction sector. The symposium collectively provided valuable insights and success stories, urging industry-wide adoption of PPM and TPM methodologies.

Transcript

[00:00:00] M Al-Azahary B A Sani: Thank you, Gary. Good afternoon. Again so I’m going to go straight to the, to the presentation and sharing on exploring pvf application and business. I think very almost exactly two years. Ago, right. It was 10 November, 2021 that we had previous 2021 UBI symposium represented ly. Right. Virtually, I, I know almost my bed time.

[00:00:32] M Al-Azahary B A Sani: The time. Right. So I also, I got the, the, the, the opportunity to present, present first because of it’s very late in the afternoon. Right. So, and, and here we are again, right after two years of, exciting duty we have based on us, right, just

[00:00:53] Nugra Kasih: to

[00:00:53] M Al-Azahary B A Sani: share some update and maybe exchanging ideas with you all.

[00:00:58] M Al-Azahary B A Sani: Oh, sorry. This is also a similar slide like before, it’s just the same, we are no longer the champions of Stupor, almost completely, but we are still, we can say it’s still, we are 8 times champions. All right, so right, without taking over, but we are, the thing that still remains there is we are still striving and exploring ways to improve our project delivery performance that doesn’t change much yet.

[00:01:32] Nugra Kasih: All right,

[00:01:33] M Al-Azahary B A Sani: so we have came a long way in our transformation journey, but like Roberto mentioned that, that we started behind the screen during, during COVID times. And now we have active physical deployment and real implementation in multiple projects, right? I think the target is to have deployment in 15 projects for this year.

[00:01:59] M Al-Azahary B A Sani: Right? But I think we, we didn’t get until 16, it was more than 10, effectively. But for each project, we have multiple scopes that we, we implemented and, and both PSO and BPC. So the total

[00:02:15] Nugra Kasih: application of BPM is, I believe, more than

[00:02:19] M Al-Azahary B A Sani: 15 already for this year, at least on top of more than 10 the mode is that the deployment is, is rapid deployment, not to the biggest scale.

[00:02:33] M Al-Azahary B A Sani: We are very strategically setting which scope to, to, to implement not for the whole project, project execution. Right, right. That the, the scope that we made this for the project in. Right. So it. Differs from project to project. So the previous phase we were in 2020, 2021, we call it as a proof of concept place, EOC, and we moved towards in 2022, 2023, currently as proof of value phase.

[00:03:14] M Al-Azahary B A Sani: So one of key things, key element that we learned through the journey is that it’s very important for us to prove the value. For us to keep moving, keep, keep gaining the support from the stakeholders they want to see, right in their bills. Right? Where is the money? What’s the value from this implementation?

[00:03:41] M Al-Azahary B A Sani: Right? Even small, right? So that’s the, the focus before this to understand the PM, but now the focus is to hand for, for qualitative and quantitative policies, we go out for value hunting. So, and the second, before this, we are the one who go into projects and try to persuade project teams, right, to encourage implementation.

[00:04:09] M Al-Azahary B A Sani: But as we, we, we started to, to, to, to have some small successes and people start to know, project teams start to, to, to, to acknowledge the impact that we had. It is now starting to become adoption by choice. So we have seen people from project that, that, that come to us and say, I want to implement UBI, please help me.

[00:04:37] M Al-Azahary B A Sani: So that, that is, the, the good side that we have seen, although not, not still limited,

[00:04:46] M Al-Azahary B A Sani: Project teams that have come pushed in that, in that way. Before this, we focused on numbers of deployment. I thought about still numbers still matters, but that is not the main thing now. We are now focusing on value obsession, right?

[00:05:02] M Al-Azahary B A Sani: So impact is more important than

[00:05:06] John David Sitorus: number of people we, we,

[00:05:08] M Al-Azahary B A Sani: we invest more time, more effort in one project. If we see that it’s great value, a potential benefit that we can see from PBM implementation at that specific project. And before this, we are the one transformation team. We have a small, small deal. I started with, with three members.

[00:05:33] M Al-Azahary B A Sani: to, to, to drive the adoption supported supported by, by STS, Roboto teams. But now, even my side team alone have already grown into almost ten. And team members to drive research ownership, but it’s not the key. We are start to see that the project team themself already have empowered, right, and they are now taking lead, taking charge, to drive the implementation at their own projects.

[00:06:11] M Al-Azahary B A Sani: with

[00:06:13] Nugra Kasih: minimal or almost

[00:06:15] M Al-Azahary B A Sani: the no interaction required from center. So there is, there is a, it’s positive thing that, positive things that we, we start to see, right? You see the, the, the numbers below in this, it’s estimated estimated value of, of quantified. Value creation, because I will explain a bit after this one, how we our, our value obsession framework, as we call to, to quantify and

[00:06:50] Nugra Kasih: to capture the value creation, right?

[00:06:53] Nugra Kasih: And

[00:06:53] M Al-Azahary B A Sani: it is, it is, it’s important concept, for us to, to, to, to track how much benefit actually comes into the project bottom line.

[00:07:09] M Al-Azahary B A Sani: We have seen, as of now, about 40 million USD, right? As of now as you find in terms of value that we, we, we we can capture, hopefully we targeting to scale up, right? And you can see now, it’s almost 20 times from, from previous year, of value creation, and we are very optimistic that we can achieve.

[00:07:36] M Al-Azahary B A Sani: Right, this is. The value obsession framework from we adopt from Petronas web. There are two key things. First part is value maturity. The problem with project is that if we see the whole cycle, we can only expect, realize value of, of any solutions implemented in project at the end of the project. When we have project two, three years down the road, then it’s very, very hard for us.

[00:08:10] M Al-Azahary B A Sani: To maintain the stamina of the deployment. So, so that’s why we have the concept of three level or maturity level of value that we capture starting with potential below. So I think with potential we have, yeah, we know that if we implement DBM, we know the potential about, for example, then 20 percent improvement in principle that we get achieved with, further analysis and further specific.

[00:08:45] M Al-Azahary B A Sani: After mapping of, of production systems and, and identification of where the bottlenecks and, and the specific, specific optimization that we can have, we can identify value. We can reach the majority of value identified, not yet implemented, but it is something that ideas or, and acceptable insights that we gain from the analysis.

[00:09:14] M Al-Azahary B A Sani: That the project team even can acknowledge that, yes, this is, I, I can implement this. And I know, I believe that this will bring value to my project. So we are focusing on this value addictified, right? So the capture of the value is actually mainly on value addictified because most, most likely you won’t be able to reach the value realized maturity.

[00:09:45] M Al-Azahary B A Sani: Because it is only, can, can be captured at the end of the project, right? And there are multiple, various levers of the value as well. Not only you. We’re talking about, normally we talk, we are thinking about cost saving, right? If we, we look at a project of a billion dollar and then, then we limit the opportunity of, of optimization from that one billion dollar project cost alone, right?

[00:10:21] M Al-Azahary B A Sani: Well, maybe, yeah, it’s already, even the margin of, of contract also now getting thinner and thinner, right? So how much, optimization or cost saving that you can pass that. But not only cost saving, there, there are actually, value in terms of cash generation, of schedule acceleration, we have early monetization monetization of assets.

[00:10:49] M Al-Azahary B A Sani: That is actually a big, variables that we are aiming for, as well as cost avoidance. Because when we see and we have data to prove that this project will be, we have a slippage of, you know, from one month, two months. Right in it is and in e that this project will get delayed. If nothing get hap nothing being done, then that definitely will be cost to the project and to the organization.

[00:11:24] M Al-Azahary B A Sani: Once we implement, once we implement solution to intervene the expected future cost, right? That is when we get the cost avoidance. So we have seen also, several projects that we are going into this direction have been having a captured value in cost avoidance levers, especially with some projects that we’re going to share after this.

[00:11:56] M Al-Azahary B A Sani: Right. So going into, into more specific Developers example of, of project implementation and then what we did with some of the project, some good stuff, as well as some lessons learned. I pass to Ryan Kedick

[00:12:13] Nugra Kasih: beside.

[00:12:14] Usaid Bin Khaliq: Thank you all. Good evening, everyone. So what I’m going to share with you is three stories because not everything is nice and sweet So there’s going to be two stories on our success and another story would be how we feel to implement PPM How and how we feel to actually kind of really change to a project So the first one, this is quite interesting because, we actually went in to help with the scope of a project.

[00:12:41] Usaid Bin Khaliq: Our strategy has always been like, start small, show them the results because seeing is believing, right? Show them the results. They won’t come back for more. So, but these projects we went and see the construction managers and that construction managers actually is a guy from whom I learned about eight years ago.

[00:13:01] Usaid Bin Khaliq: And eight years later, I, I ran back to him and I said, I have, I have a better way to do tion. And he was like, you look construction for me, right? And now you compared to me, tell me there’s better way . So he give an , he say, okay, I’ll give you a moment. You come in if nothing improve, picture your back. I you go.

[00:13:19] Usaid Bin Khaliq: So that was the back. So I said, okay, I, I accept the challenge. And that’s why we call Roberto Steamin. With the help of PS We deployed I think Michelle was there for two weeks from PS. We deployed, so the scope was to make the substation, because if you see, substation is nothing more than just the four wall blocks, right?

[00:13:41] Usaid Bin Khaliq: But surprisingly, like, like the first flag dockers, We said fail, right? It’s just a four blocks, four walls, and we fail. So we ran in, we said, just to get the substation ready to accept the bailout. So if you can see here, what we did was we recovered 30 days of delay. They were already 30 30 days delay in 60 days of time frame.

[00:14:05] Usaid Bin Khaliq: So, and then, the thing that we promised to the construction manager was also like, I will give you an insight that you have not received before. Right, because he was always a question like, what is the difference between DPM and P six and everything all? So I said, I’m gonna give you any insights that you don’t have in, in P six.

[00:14:23] Usaid Bin Khaliq: So towards the, if you see here, this graph actually tells you the insights, okay? Why this is important, right? Sometimes when the project is really what you normally hear is that add more manpower, but is it so? And if yes, you wanna add more manpower, where do you wanna go in? Alright. So, but what they realized throughout the journey.

[00:14:45] Usaid Bin Khaliq: You can see over here is, is basically the, the green is the last response moment for the, for the task. And the blue line is the actual that we caught in at the site. So if you see somewhere after two weeks or, yeah, almost about two weeks of, of deployment, you can see the, the graph actually cross over to the positive side.

[00:15:05] Usaid Bin Khaliq: But you see, all the activities and eventually over a year, we come back being normal. Why? Because there was an issue with the engineering, right? They cannot fit information to construction and this is normal. Engineering was waiting for some other people to give them information. So this waiting game is actually what one of the vari really the biggest variability.

[00:15:25] Usaid Bin Khaliq: That we already see in the project. So, by having, for example, the specific case for the HVAC, HVAC details for the substation. So, once we have this, and we have it plotted and recorded, this was brought back to the engineering team. Guys, this is what it’s going to cost me. You see all the variance here?

[00:15:44] Usaid Bin Khaliq: It’s going to cost me a lot. So, now engineering team also, they have data, supporting them to maneuver which priority goes in first. So this is the first success story and this success story is basically, it was implemented by Petronas TU. Means that, the customer action manager, my friend, the customer action manager, he says, I won’t implement for you, and he was, I mean, the whole PPM deployment was drive by Petronas TU.

[00:16:11] Usaid Bin Khaliq: Now, for the second one, the second one, we said let’s try with let’s try with Contractor themselves deploying it because, you know, for us to be sustainable is the guy who is actually doing the work needs to believe in BPM or else it’s going to be forever driven by Petronas and if I’m retired, for example, right, it’s just going to die off.

[00:16:32] Usaid Bin Khaliq: So that’s why for the second deployment or success story is that we went to a project. It was a very small scope, but it was very important for a plan to turn around because, they were upgrading their equivalent treatment system. And the scope given to us was already like 28 days delay. And this was critical to start up after post shutdown.

[00:16:53] Usaid Bin Khaliq: And if they don’t start, if this task is not completed, the plan literally cannot start. Alright, and I think it was, the revenue was about 10 million per day kind of things. So 28 days, just multiply. So we ran in, we capture back, sorry, we capture back the 28 days delay. Of course, at the end of it, we couldn’t make it to zero, like the first case.

[00:17:16] Usaid Bin Khaliq: But still, 28 days is a lot of saving, right? Now when, when contractors see this, and you can see over here, this is the group of contractors working on their daily production and planning and things like that. So, when they see the results, they themselves come back to us and say, I’m going to implement For the second scope.

[00:17:36] Usaid Bin Khaliq: And I think this was like two weeks ago, they just started on the second scope. So this is the kind of change that we are trying to bring and the way we are doing it change. I think there was a question during our session yesterday in training on how we do a mass implementation. So there is actually no secret recipe for mass implementation.

[00:17:54] Usaid Bin Khaliq: You just have to do it small, eat the animal bit by bit, and you will see, you will see the success. Yeah, alright, this is the unfortunate, of course, like I said, not everything is rosy, right? So, over here, we ran in, we had it deployed, we have VPC deployed for this. This is also a subsession scope. The thing was, compared to earlier subsession job, this one was up until full completion of the subsession.

[00:18:25] Usaid Bin Khaliq: So meaning to say that if earlier, if the first success story was for 30 days duration, this was like for months. And this is where we see the first failure, you see, because the duration was long, people don’t see the results, and they were like, this is just adding up my tasks, they eat us. And to make it worse, the team from the contractor for this project, they were also like, I mean the whole project was running behind schedule like months.

[00:18:49] Usaid Bin Khaliq: So when, when you come in with the new methods, it was like, not another thing. All right. So, so what happened was, they deployed, they see some recovery, but because there was no drive from contractor, right. The kind of hold it back. And my team went in back, I think September this year. We, we put a support on how we do VPC implementation again, we get the ball rolling again, we see an improvement happening again, but when we left the project, the graph was lost back.

[00:19:22] Usaid Bin Khaliq: The, the old scope went into the release. Now, in the middle of the deployment, they said, because the old subsession is too huge, let’s cut it down to just the readiness of subs subsession. But then again, we see, when we come in, it shows improvement, but when we go back, the whole thing was, was back down.

[00:19:40] Usaid Bin Khaliq: So this is where we are seeing that we can see an improvement if there is really a commitment, right? And for you to get a commitment, you need to show them the success. I mean, yes, we are from Believe. org BPM, but not everybody is like us, right? So this is one of the things that, that we couldn’t manage to solve it.

[00:20:00] Usaid Bin Khaliq: And this brings us to, What we see, our key challenges now, I mean, we have been deploying for the past two years, right? Still, the biggest challenge is the commitment and the mindset. Like I said, when you go and see construction managers, again, I would say like, I have been doing this for the last 20 years, right?

[00:20:21] Usaid Bin Khaliq: This is how we do it. But if you ask them, where was your last project that was finished on time without a baseline? All right, and it was like, that’s why you need it. Okay. So again, I mean, it’s, it depends because some, some construction managers, some, some, some project managers, they are very open to it, right?

[00:20:40] Usaid Bin Khaliq: They will listen to you. You know, they will try the games, the dice game, everything. You will see the result, the pen games. So I would not, but, but those people are very, very small, I would say, in quantity. So again we really need to see what is specific issue of the projects. And how we can handle that.

[00:20:59] Usaid Bin Khaliq: So what we are seeing as part of change management is that we need to have a committed team. So I think the team from our side is growing and the team from the project needs to be, I mean, what we are seeing now is that for every project that we were named, you need to have a champion for it. It’s not that I don’t want to support you guys, but if you don’t believe in it, it’s

[00:21:19] Nugra Kasih: not going to work.

[00:21:20] Usaid Bin Khaliq: Right. And the reason is that when we are doing that is because. We know that PPM gonna help you, right? And by implementing it in the wrong direction, you’re gonna find you back, say, are you bringing PPM? But, but if really doesn’t help us. So there, there is always something that we are avoiding. So, and the last thing is, let’s celebrate small success.

[00:21:42] Usaid Bin Khaliq: So, like I said, have a small scope, celebrate the success, explain it. So all the success story, all the success stories that I’ve shared to you guys. We have seen scope rules from one scope to another, scope to another scope. Right. And this is the natural, or I would say the organic way of scaling up. And then I think second challenge is about the knowledge and capability.

[00:22:07] Usaid Bin Khaliq: For example, right. We have different perspectives on how we manage project again. All right. And when you bring in PBM, there are terminologies that are seen that are similar, but not, but not, but not the same. For example, Schedule Variance. When you talk to business guys, Schedule Variance is totally different thing.

[00:22:25] Usaid Bin Khaliq: When you bring in from PPM perspective, it’s different thing. So I think it is more like, we need to have more kind of exploration session. And that’s what we are doing. Okay and then second is, and the last thing is the implementation practicality. This goes back to what I said earlier on, be selective on where you want to, on where you want to deploy it.

[00:22:46] Usaid Bin Khaliq: Because the wrong deployment is going to fire back, and you’re going to kill the worm all the way down. Right, so and I think one of the biggest challenges we see in, in the practicality side of it is that when we first develop the standard process. Like the first Substantial Chain project that I showed to you guys, it took us like almost half a day to develop just a small scope of complete chain.

[00:23:09] Usaid Bin Khaliq: Why? Because first, people are not, people don’t understand the terminologies, the process of it. And, and you see that, you need to bring a lot of people because the guy actually who is doing the work, for all you know, he’s the last guy that people go and talk to. So when we develop the standard process, Initially, they said, ah, we are the main con, we can do it for you.

[00:23:33] Usaid Bin Khaliq: But when we go into the details, the granular details of it, then they were like, okay, I need my subcontractor to be here. They go and call the subcontractor, and you know, when the subcontractor came in, the way he showed that this is how I am going to build it was totally different than what the main con said.

[00:23:50] Usaid Bin Khaliq: And the main con was like, well, I didn’t know that. All right. So, I mean, at the end of it, people saw the benefit. Yes, I spent half a day developing it to start the process. Yes. But the process of development of standard process is very, I would say it’s basic, but of course it’s good, but it’s a challenge.

[00:24:09] Usaid Bin Khaliq: And that’s why we are saying that there is an opportunity to have a standard process library, so that we don’t start everything from scratch. I know, I know the whole idea behind developing standard process is bring everybody on the same table, on the same page. So that will not happen like one team is going to the north, the other one going to the south.

[00:24:26] Usaid Bin Khaliq: But then again, there must be some sort of similarity that we can do. So I think let’s go

[00:24:32] M Al-Azahary B A Sani: on to Al. Wait, wait, wait, wait, wait, wait, wait. To be slight, a bit, right? So I think we have discussed this morning as well, from Bill and also Sarah, mentioned about the, the, in terms of, of, knowledge and, they want to touch upon knowledge and capability, right?

[00:24:51] M Al-Azahary B A Sani: So, we have seen, we have yet to see that not, not so many materials and interactive, for example, creative, easy to understand on, on, on PPF, even. If you Google the definition of project production management, it’s not a straight answer. Right, so what is BPM, right? So maybe we can find a way of getting that clarity in terms of delivering the message, right?

[00:25:24] M Al-Azahary B A Sani: The clear message. What is it, actually? My boss, Mr. Prakash, was also talking about expecting the elevated speech. Elevated, what we call mono speech, speech pitch, right? Yeah. Elevated. Elevated speech, right. So when we, we, we explain about the the project the project that we, we, we, we implemented that the, what, what triggers his mind is that the story of, of the substation is very simple story of substation, right?

[00:26:01] M Al-Azahary B A Sani: To understand for him to understand VBF, right? It’s just four wall and the roof. How simple it is, how high can it be, right? But imagine if we, we have four walls and one roof. And start, start with building a four wall, yeah, using bricks. We have four bricklayers working

[00:26:20] Nugra Kasih: on the four

[00:26:20] M Al-Azahary B A Sani: walls, right? Until two meters, right?

[00:26:25] M Al-Azahary B A Sani: The, bricklaying And then, after two meters, they need to have scaffolding. Then, the scaffolding guys come and do scaffolding while the bricklayers go out, right? Waiting for the scaffolding to complete. And then they continue with the two meters and above. Why not, in a different perspective, we have three bricklayers working on one wall to complete the two metres, and another one just for another wall, the second wall, and leave the other two, right?

[00:27:04] M Al-Azahary B A Sani: Well, when the three bricklayers complete the first wall, they can go to the second wall

[00:27:11] Nugra Kasih: and the scaffolding can work on the first wall. So,

[00:27:15] M Al-Azahary B A Sani: when we discuss about that, is it, is it just a common sense, right, to be, I think the second way is much better. So that we have the constant flow of food that doesn’t, nobody needs to wait.

[00:27:30] M Al-Azahary B A Sani: And that is how it triggers the understanding of project as production system, so simple stories and simple example like that, that, that hopefully you can, can triggers the mind of people and get the understanding of them. Yeah. When we talk about operation science, maybe people get scared, right?

[00:27:54] M Al-Azahary B A Sani: Alright, so and, and we’re talking about commitment again, right? So even with us at the project program management level, we also also track our, our commitment, reliability. This is our commitment. Reliability of the project or program management? Team, not the project. Yeah. So even ourself, we make ourself to, to, to.

[00:28:21] M Al-Azahary B A Sani: So to be disciplined enough, have weekly planning for the next week, right? And we track our commitment ratings of 60%. Yes. We have a lot of practice change, but it keeps us moving and, and, and then discipline as well as, as,

[00:28:41] Nugra Kasih: We bring the practical

[00:28:43] M Al-Azahary B A Sani: experience on ourself as we deploy to other projects as well.

[00:28:47] M Al-Azahary B A Sani: And back to the commitment, before we, we, in, in deployment to projects. Before we can improve the project’s commitment reliability, obviously we need the commitment to be present first in the project, in the project teams, right? So, so, once They have the commitment, the right, the, the commitment is that there are possibility for this to finish the commitment design and improve the

[00:29:24] Nugra Kasih: project.

[00:29:24] Nugra Kasih: Thank you very much. That’s all.

[00:29:28] M Al-Azahary B A Sani: We have Nigra and John. Nigra is the project production

[00:29:32] John David Sitorus: coordinator for Tripatram,

[00:29:35] M Al-Azahary B A Sani: where he’s responsible for deploying PPM methods and principles on projects.

[00:29:39] John David Sitorus: He has experience implementing lean principles

[00:29:42] M Al-Azahary B A Sani: on various industrial projects. And John is the head of project production management department.

[00:29:47] M Al-Azahary B A Sani: Chris. He has over 30 years of experience in global project

[00:29:51] John David Sitorus: delivery in oil, gas, and renewable energy sectors. So

[00:29:54] M Al-Azahary B A Sani: gentlemen, I’ll turn it over to you. Who gets the mic first?

[00:30:00] John David Sitorus: Thank you. Good evening, everybody. I think, first of all, I see that all of you are very serious here. So it scares me a little bit. Let me introduce ourselves.

[00:30:15] John David Sitorus: We are from Indonesia. You can see my costume. That’s why I have to start with my costume. It’s very unique. This is a local Indonesian costume. So if you happen to meet someone using, wearing this type of costume, then you know this is Indonesia. Okay? Okay. Where is this? Okay, thank you. Thank you for the opportunity.

[00:30:40] John David Sitorus: Okay, before we share our experiences in TPM implementation, let me introduce about our company. So we’ve been we just celebrated our 50th. Just last month, 13. So we have five decades already. So initially we start in the oil and gas business, right? In early decade. You know, looking at the business of oil and gas in Indonesia, it turns out to be going slower and even lower.

[00:31:16] John David Sitorus: So as a company and involving in the low profit arts and industry, so we have to see bigger picture. than just oil and gas. That’s why we are now approaching not only oil and gas, but also mid streak industry, even downstreak. Even we are going to the minerals projects because we have a lot of resources in Indonesia.

[00:31:45] John David Sitorus: Minerals. And that’s how we have to look and we are building the capacity, capability to manage this type of project also. And you know also that a lot of certification requirement that we have to comply. Our company also going to try to capture many, as many as possible certification. This could look a little bit nicer to the estimates of all these companies out there, you see.

[00:32:15] John David Sitorus: To start with, yeah,

[00:32:17] M Al-Azahary B A Sani: and that

[00:32:18] John David Sitorus: not only we are working on the EPC, VCM type of project, we are also expanding our capacity to manage the operation and maintenance project. Yeah, and as you know, the digital transformation is approaching this industry also. So we have to also working on this guy. We are now, I think, one of the company, including the contractor, I believe, they’re using a paperless report.

[00:32:49] John David Sitorus: And we have an online project simulation, even can be accessed through your mobile. So, so this kind of need, happen in our company. That’s why we can consider ourselves as one of the leading contractors in Indonesia. So besides all the things that I mentioned before, there are a lot of additional requirements that we have to meet here.

[00:33:19] John David Sitorus: One is the environment, social and governance, and we have to meet it. We have a sustainable commitment to meet all these, so we not build something right to finish quickly. But at the end, the environment is destroyed, and you know, the local people are upset, you know. You know, we just have experiences to put people upset.

[00:33:39] John David Sitorus: People told me, from the system point of view, it’s good. But a lot of people are just not happy. That’s not what we are doing. So this, this added to, to the way we do projects. And Project Madison is our key. Yeah, to be successful in this type of industry, you know, not only the emission, water management, waste management, energy usage, even gender equality.

[00:34:10] John David Sitorus: We are the company that hire women up to, I think, our women in the company reaching about

[00:34:18] M Al-Azahary B A Sani: 18%. Yeah. So,

[00:34:21] Nugra Kasih: so

[00:34:22] John David Sitorus: our commitment with such a commitment, you know, it’s making our life is not easier. It’s challenging ourselves to find a way to find a solution, to find a better way to run this type of company. As you know with regards to project delivery, right, so we got some information you can access there.

[00:34:48] John David Sitorus: And it is based on the CII information. A lot of projects, you know, have a problem in the state, overrun state. Even McKinsey and company. Also mentioned almost the same, I would have another information, as you know that we are building many infrastructure projects recently in Indonesia. I think we are still also facing some delay.

[00:35:16] John David Sitorus: Yeah, we thought that it’s easier and more complex than, than like a petrochemical or oil and gas, but still, we see some, something happen. The same thing with us. Yeah, so, several items that I mentioned here, this is Kind of learning and pain that we are facing as a contract and time. We try to make the owner or the client is happy in the beginning.

[00:35:43] John David Sitorus: Wow, you look great. You are ahead of the price. But following on what we see also, that we are hard. I mean we are physical of keeping our sustain out before. That’s because we use the old

[00:36:01] Nugra Kasih: school concept.

[00:36:04] John David Sitorus: And the other thing I think you use, I don’t need to explain one by one. Yeah, there are a couple of things that factory resources, you know, and Codeflex legally compliant, the Codeflex requirement and compliance.

[00:36:20] John David Sitorus: You know, in Indonesia, we are, we have to consider what we call it blocks of code. You know, even now in this project, They set up certain local count, so you cannot just have flexibility in bringing some company or some technology just to meet your requirement.

[00:36:44] M Al-Azahary B A Sani: I mean, the government

[00:36:45] John David Sitorus: set up local count, which makes our life harder.

[00:36:48] John David Sitorus: This

[00:36:49] Nugra Kasih: is true.

[00:36:51] John David Sitorus: And also our project stakeholders not so many are really understood about this. What I mean is that understand or they just want to know that our project complete whatever the plan. They don’t want to know how to do it sometimes. That’s in, in our, this is what we are facing. Yeah. So what happened

[00:37:16] Nugra Kasih: is based on this, our

[00:37:20] John David Sitorus: management, our, our help is trying to, you know, do some reflection.

[00:37:29] John David Sitorus: What, why we need. A new

[00:37:32] M Al-Azahary B A Sani: approach.

[00:37:33] Nugra Kasih: Why make it a

[00:37:34] M Al-Azahary B A Sani: new

[00:37:35] John David Sitorus: approach? Yeah. We find that the complexity of the project is getting high because we are expanding our value. Yeah. So, unless we find something is going to help us, you know, we’re getting squared, so. The second one is, there is a consistent expectation from the customer for the faster product delivery.

[00:38:02] John David Sitorus: So, they don’t want to understand how you do it, you know. How you can achieve it. But that’s a consistent expectation. And then better project management execution. This is become like, not an option. This is a month and better predictability, predictability, delivery. And we see also the last one that if you rely on the people, I mean people knowledge.

[00:38:34] John David Sitorus: It’s getting all the people, so the retention is a problem. So, we

[00:38:39] M Al-Azahary B A Sani: want to find also system

[00:38:41] Nugra Kasih: that can help

[00:38:42] John David Sitorus: us developing our team. Time by time, not rely on the certain people experience. We keep him there, we try to teach him that good, but in the end, when he’s gone, he’s gone with the knowledge. So this kind of thing makes also our CEO our, company qui is aware of.

[00:39:08] John David Sitorus: You need to find something which can make us sustain in the strip of industry, whatever the cap

[00:39:21] Nugra Kasih: fire around or down

[00:39:27] Nugra Kasih: back to.

[00:39:35] John David Sitorus: Yeah. Yeah. I keep. Talking with people, the father. Yeah. So, so what happened? You know, our CEOI think is our three CEO is one of the iron needs in bringing this EB, to be honest, you know, when I heard the first time, I just said, you really

[00:39:59] M Al-Azahary B A Sani: want to, you

[00:40:00] John David Sitorus: really want to project with this approach. Know, and then it makes them you to bring me , you know, the I’m talk.

[00:40:13] John David Sitorus: So he tried to convince me, you know, you know, at the end, I think, after he can convince

[00:40:19] M Al-Azahary B A Sani: me that he, he’s, if he made

[00:40:22] John David Sitorus: it even though I’ll give it to me, well, so in the project charter, we just would, you know, there’s commitment to apply TPS in the execution, you know, not only work now in the project charter, all the project managers has to be committed to that.

[00:40:41] John David Sitorus: Wow. So instead of waiting, you know, I think. It’s very good, yeah, for us to see that, let’s see the profit. No, our CEO doesn’t have time for that. Because we are living with a low profit market in this. We have to see directly. Let’s, let’s, let’s learn something and at the same time get the benefit, you know.

[00:41:03] John David Sitorus: Yeah, so even we start having

[00:41:06] M Al-Azahary B A Sani: a campaign of this

[00:41:08] John David Sitorus: VBA. Yeah, so later on, at the end of this slide given by my colleague, you will see also we are building the conveyor. You are employees. You know, not only the project manager, but everybody is to be aware. Hey guys, hey Brooks, come on. Forget the old school.

[00:41:30] John David Sitorus: Not forget the old school. Just remind this is a new school that you need to, otherwise you will not survive with this. Go cannot. This is why so. So this side of things that trigger

[00:41:45] M Al-Azahary B A Sani: us to go

[00:41:46] John David Sitorus: to the . Yeah. So recently we have a project with Shell also, we’ve tried to approach them, I mean, to use this methodology, in implementing our project.

[00:42:00] John David Sitorus: We did, we are now in the process of completing one project operation and Teplokavik room of one, yeah. And then my people, and the way we do it, you know, the good thing is that even the client now interested. You know, in using our approach, just, he said that to compare with the typical SKU event by the Project Concord.

[00:42:30] John David Sitorus: He said, why is this a different result? Why the Project SKU earned it even a different result with the PPF and the left? Then he just realized, ah, I just want to use the BBM now as a basis for him to talk. Because we are, Respectability Company is one of the government company

[00:42:49] M Al-Azahary B A Sani: who

[00:42:50] John David Sitorus: try to control the consumption of fuel in Indonesia.

[00:42:54] John David Sitorus: You can imagine if we are late on that, the nature shut down, you know, in effect, it’s not only them, we scolded by really by government, but we also have, we have purpose. So, so this kind of thing that, part of a redirection of our company to see a good thing from the DPM that we expecting the more good thing we will expect to see by implementing DPS in the way we do and execute it.

[00:43:28] John David Sitorus: So the next one I’ll, I’ll give my chance to my colleague to explain certain implementation on this, we get in some

[00:43:36] Nugra Kasih: of our project. Thank you. Thank you, Bob. So before I start, maybe we can give a round of applause to PPI because this wonderful event. And then also, because I, I don’t know it’s planned or not.

[00:43:53] Nugra Kasih: I’m shook actually just because I cannot see any slide and then I need to tell before before just now. Right. And then Christine helped me. With the ring again with slides. So okay. Okay. So, as you know maybe Roberto knows people from SPS. Now is that Tripata already implement BPM only five years of implementing.

[00:44:20] Nugra Kasih: But yeah as you know, we are, the one that I believe when I joined Tripata implementing BPM and then I previously implementing lead constructions in. Buildings dam project, infrastructure projects. So the one that I believe in, like, AWP, BPM, and lean is not just transforming one company, but also transforming the industry.

[00:44:48] Nugra Kasih: So that’s the one that we are facing. So therefore it’s, it’s kind of hard. Not just, it’s not, I said, it’s not just a medicine that we can solve it all, but it’s like, you know, we building trust. More and more to the people on the ground. So at first, this is the roadmap, our roadmap of implementation.

[00:45:10] Nugra Kasih: And then, if you get seen here, there’s a line there, but it’s not like, in initiation and then go iteration, scale up valuation and creation. And it’s finished. No, it’s just in every projects we do it. Again, and again, not even in every projects, but in every package of work. So we are dealing with subcontractors.

[00:45:38] Nugra Kasih: We are discussing with them with the implementation of this. And then the objective that we are getting this is based on the presentation that we can see gave us before when introducing five years ago about PDM. And then I think based on the that get the objective of this only. Maybe two or four implementations.

[00:46:03] Nugra Kasih: So, if you can see here, like, work in process inventory is managed capacity allocation variability and schedule cost compression. We’ve just managed the capacity allocation and variability decrease. So, there’s two more goals that we need to achieve in this year. Okay, so this is our detailed PPM strategies.

[00:46:27] Nugra Kasih: This is the enablers. So we are on that daily cadence consistently you can see in here. But for short, there’s so many things that we need to do to implement PBM, and then we can see based on the insights. So, mentioned by, who said before implementing, we achieve you, we celebrate small goals, small achievement.

[00:46:53] Nugra Kasih: We can see in here, all the insights. We also celebrate with, not just with our team. But also with the subcontractors and workers on site, we really talk to them and it goes to the site and so on. We can see, the lead talk is getting back and then we, we directly influence them with the implements of BPM.

[00:47:19] Nugra Kasih: So regarding the implements of BPM, we’ve already, like I said before, I for sorry, we mistyped on the end. It’s quarter three, 2023. But overall it’s already seven engineering projects, EPCM and EPC projects, and then not just oil and gas projects, but we’re also doing, geochemical petrochemicals project, geothermal projects.

[00:47:48] Nugra Kasih: And then yeah there’s many EPC projects going on, and then this is the applications that we are trying to do implementing and left side is the production system control and I said the production system optimization. So the interesting part about the production on the left side, the EPC, production system control, production plan control we also generate, one simple pager for every owner or every subcontractors to see how their performance, how their performance of.

[00:48:29] Nugra Kasih: So you know, if they want to see the graph I don’t know, maybe people from. I, I’m not saying that my people is not, you know, see the easily the data, but they usually easy to see the performance of projects only on one page. So not, you know, there’s so many pages that they need to see. So I summarize it using in one page so everybody can see.

[00:48:57] Nugra Kasih: And then if you can see in here, this is only one of. production flow of one pump. This is only one pump, guys. So in this project alone I have, like, 50 pumps. And then there’s so many preparations before that. And then I just show it. This is simple. And it’s not full, actually. It’s cropped. And then there’s so many activities after that.

[00:49:23] Nugra Kasih: And then as you can see in here, there’s so many subcontractors. There’s so many parties that is happening you know, doing the activities that’s maintaining the production flow. So mentioned before there’s another process. If you can see in here, there’s a contractor and client part. On the left side and right side.

[00:49:47] Nugra Kasih: So, what that what it means in here, every time we’re doing the work, we also collaborate with the client. We become more transparent with them, and then we engage with the client. I will show I will show you later and then I will share you the experience. Even the contractors at first really doubt about this IBM implementation, but yeah, just as you know, we just show them how we can run projects, of the future.

[00:50:18] Nugra Kasih: If you can see like that. Okay, so this is the production system optimization that we’ve already implemented. This is in civil stage, so an excavation rate. And then you can see in here, this is the grid part. It’s the one that planned by the project control. So, even the project control now in our company already done the level 5 schedules.

[00:50:43] Nugra Kasih: Even level 6, level 7, or you mentioned it, level 8, 9, or everything. It’s not, you know, it’s not reflecting the production system that’s happening on the ground actually. And then as you know when I, the funny thing when I want to create the production schedule at first. The project control just give me the level 5 schedule.

[00:51:07] Nugra Kasih: You can create the production schedule using this level 5 schedule, but really, at the NICF, cannot. It’s because, as you know, in a production schedule, there’s no start to start relation. There’s no finish to finish relation. There’s only finish to start. It means All the projects, it’s like, you know, it’s a handoffer.

[00:51:32] Nugra Kasih: I learned from Valartir that’s every projects in every activity, in every projects, it’s a promise to every artist. So that’s why if you can see level five schedules cannot bring it all. That’s why after we implement the PSO, we can see it here. The blue part and then the three gray and then the orange part, you can see it’s based on the rates based on the rates of the productivity.

[00:52:04] Nugra Kasih: And then we can see that it’s not matched with the plan duration and plan with the schedule. So maybe I keep thinking. Yeah.

[00:52:19] Nugra Kasih: Okay. So, in terms of integration. Trikarta has so many initiatives like AWP. We have also mentioned by Sarah, Core BI all over the projects. And then we can see in here, we also integrate with EPM with the Core BI. So directly we can see the rates. Of every activity in production schedule directly to the management dashboard.

[00:52:50] Nugra Kasih: So you can see in here, so so that I actually session and then it’s directly through API, if you know about it. So it’s directly through API to, from production planning console to PC software to directly to the dashboard of Power BI.

[00:53:10] Nugra Kasih: Okay. So this is our success stories. And then I will show you later our, our challenges. This is our success stories. The first is engineering case. There is slower reduction of main hours. Around 49 percent of reduction main hours. And then for construction case, this is recently we got that we have 30 days acceleration for heater construction.

[00:53:39] Nugra Kasih: Implement of Hiter. There’s two heaters that we accelerate in 30 days of construction. So this is the process, actually this real case process. The first is we presentate the, you know, we get buyback from the owners about the I importance of PTM. So we presented the PBM to the directors, and then we directly, actually, they don’t believe it because, as you know, this.

[00:54:09] Nugra Kasih: I’m sorry, boss. So this is, So when, When I explained to him about 3PPM, Actually, he doesn’t believe anything we say. Because he said, Our performance in managing project is really bad in their project right now. So they already have a bad image with us. So actually, they just, okay, I will sit your next the last effort to implement any project manageable strategy you have.

[00:54:43] Nugra Kasih: And then, yeah, just go on with it then. And then after that, we directly, okay, if you want to test me, just go out there. And then I just go directly to the subcontractors, to the workers on site. We need to plan this. And then after that, directly with the owners, this is the owners, the owners want, and then we implement the production schedules directly and the standard process.

[00:55:10] Nugra Kasih: And then we manage it daily. So if you mentioned before, it’s weekly, but we, mention it in daily, we plan in daily. So there’s no weekly work planning, but daily work planning. And the result is real, so we enhance the real time communication and also the acceleration of the happiness of heater construction.

[00:55:35] Nugra Kasih: So, this is our main challenge right now. I’m not saying that, I know I’m representing Tripadra, but I’m also representing PPM Indonesia. We are in PPM Indonesia. We have so many challenges. And the first, of course number one is culture, if you can see people adopting new methodology, new mindset about projects, and then lack of BPM knowledge that’s used actually, to be honest, maybe people from here already know BPM and then maybe there is a person from BPS or Mobius, but it’s in us, it’s another out of the world.

[00:56:21] Nugra Kasih: So in Indonesia, people from, even from. Shell or ExxonMobil PPM. Yeah. So this is what we are facing actually. And then number three is actually our problems, about the objective of PPM. Because PPM using tools like digital tools I’ve already implement. Also like in construction, if we introduce about digitalization, they will think that all in construction is a digitalization.

[00:56:54] Nugra Kasih: OPBM is a digitalization, but it’s not. It’s more than that. It’s a lot more than that. That’s why number three, bias is in every objective we tell to the people. And then the process, of course the integration with the project controls and so on, and then technology. Degradation with the PPM and other software that we are using.

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Speakers

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M Al-Azahary B A Sani

Petronas

M Al-Azahary B A Sani

Petronas

Al-Azahary is currently leading a team to drive transformation in PETRONAS Group Project Delivery. He has seventeen years of working experience in the oil, gas and petrochemical industry. He was involved in plant operations and maintenance before assuming a Project Manager role overseeing various plant change and rejuvenation projects. He is currently spearheading Project Production Management (PPM) implementation within PETRONAS projects, and also playing the role to shape Malaysia’s Oil & Gas industry players to adopt the methodology for improved project delivery performance.

He holds a Bachelor’s degree in Electronics Engineering and a Master’s degree in Process Plant Management from University of Technology Malaysia.

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Usaid Bin Khaliq

Petronas

Usaid Bin Khaliq

Petronas

Usaid is currently a Manager at Construction Based Engineering (CBE) division of Petroliam Nasional Berhad (PETRONAS). He has 15 years of experience in the oil and gas industry specialized in project execution and intervention at all phases including conceptual engineering, basic engineering, detailed engineering, construction & commissioning. He started his career in oil and gas at WorleyParsons before joining PETRONAS in 2014. Currently, he is leading the portfolio of Project Production Management (PPM) & Advance Work Packaging (AWP) deployment in PETRONAS capital projects.

Read Biography

Nugra Kasih

Tripatra

Nugra Kasih

Tripatra

Nugra is the Project Production Management Coordinator for PT. Tripatra Engineers & Constructors, where is responsible for deploying PPM methods and principles on projects. He has experience implementing lean principles on various industrial projects. He has a Bachelor’s Degree in Mechanical Engineering from the University of Indonesia.

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John David Sitorus

Tripatra

John David Sitorus

Tripatra

John is Head of the Project Management Department (Oil Gas, Midstream (Petrochemical) & Downstream) for PT. Tripatra Engineers & Constructors. He has over 30 years of experience in global project delivery in oil, gas and the renewable energy sector. He has a bachelor’s of science in Industrial Engineering from Bandung Institute of Technology in Indonesia and a management degree from Robert Gordon University in the UK.